Rédaction Africa Links 24 with New Dawn
Published on 2024-03-04 01:28:00
Business failure can occur for various reasons, including the inability to generate enough revenue to cover expenses or make a profit. In Liberia, the failure of businesses is attributed not only to these financial challenges but also to the lack of government support. The country has a dual currency regime, tax incentives, and laws protecting investments, making it an attractive destination for investors. However, political interests, corruption, and a weak legal system influenced by government actors have hindered the success of small businesses and foreign investments.
Countries typically implement regulations and laws to protect local industries, small businesses, and indigenous businesses, which are crucial for economic growth. In Liberia, although these protective laws exist on paper, they are often undermined by politically motivated interests. The government claims to protect indigenous businesses through policies like the Liberianization policy, which reserves certain industries exclusively for Liberians. However, these businesses are being taken over by foreigners authorized by government agencies, pushing Liberians out of their own businesses.
For example, businesses like sand supply, block making, and auto repair shops are supposed to be reserved for Liberians according to the law. But in reality, foreigners, particularly Chinese, Lebanese, and Indians, dominate these sectors with the approval of government officials. The Chinese control the supply of sand and crushed rocks, significantly increasing prices and making it difficult for ordinary Liberians to afford construction materials. Lebanese and Indians are involved in retailing various goods, even though these businesses are meant to be exclusive to Liberians.
Government officials and agencies often prefer foreign-owned businesses over Liberian-owned ones, contributing to the decline of indigenous businesses. In some cases, government entities even award contracts to foreign printing businesses in other countries, bypassing local printers who pay taxes to the Liberian government. The lack of policies to protect local industries and promote manufacturing further exacerbates the challenges faced by Liberian businesses.
In the rubber industry, efforts to restrict the export of unprocessed rubber aim to support local manufacturing companies. However, the possibility of revoking such policies for political interests jeopardizes the growth of local industries. Without a commitment to prioritize Liberian businesses and implement suitable policies, the Liberian economy will continue to struggle.
To address these issues and promote economic growth, the government must prioritize the protection of indigenous businesses, enforce existing regulations, and implement policies that support local industries. By creating a conducive environment for Liberian entrepreneurs to thrive, the country can overcome the challenges that have hindered the success of its businesses. Only through a collective effort to support and prioritize local businesses can Liberia achieve sustainable economic growth and development.
Read the original article on The Newdawn Liberia
